NEW DELHI (REUTERS)

India's cabinet has approved spending 450.6 billion rupees ($5.1 billion) on support for exporters, including 200 billion rupees in credit guarantees on bank loans, Information Minister Ashwini Vaishnaw said on Wednesday.

The plan includes the allocation of 250.6 billion rupees over six years for affordable trade finance for small exporters, logistics, and market support under an export promotion package to help offset the impact of recent US tariff hikes.

The new US tariffs has raised duties to as high as 50% on items such as garments, jewellery, leather goods, and chemicals.

The plan includes a 200-billion-rupee credit guarantee programme running until March 2026 for collateral-free bank loans to exporters to boost their competitiveness and help explore new markets, Vaishnav said.

It would provide credit guarantees on loans of up to 500 million rupees, he added.